BMW accelerates the transition to electric vehicles
Image: BMW
BMW is accelerating the transition of its electric vehicle lineup to the sixth generation of electric drive technology (Gen6). Due to high demand for the “New Class” models, certain electric vehicles equipped with the current Gen5 battery technology will be phased out earlier than originally planned. The Munich-based automaker announced this in its quarterly report. Which specific model series are affected and when production for them will end have not yet been disclosed.
The background is the accelerated production of new electric vehicles. According to BMW, the company has introduced additional production shifts and significantly increased manufacturing capacity for Gen6 models this year. At the new plant in Debrecen, Hungary, operations have already been expanded to three shifts to meet demand for the iX3 and iX4 models produced there. CEO Milan Nedeljković stated in early November that the higher availability of the new vehicle generation allows for an earlier phase-out of selected Gen5 models.
Technically, this upgrade is based on the sixth generation of BMW’s eDrive technology, which includes new high-voltage batteries with round cells and an 800-volt system. Compared to the previous generation, BMW promises up to 30 percent higher range and up to 30 percent faster charging speeds. The Gen6 technology is already being used in several electric vehicle models, starting with the new iX3 and the i3 produced in Munich since August 2026.
In addition to technical modernization, BMW pursues economic goals through accelerated model updates. The manufacturer expects the Gen6 technology to yield higher margins due to improved cost efficiency compared to previous electric vehicles. However, in the short term, these earlier model changes and other structural measures strain profitability: For 2026, the company reduced its forecast for the EBIT margin in the automotive segment from 1 to 3 percent to minus 0.5 to plus 0.5 percent. Without these additional portfolio and structural measures, BMW still expects an operating margin of over 2 percent.
The German production sites are also directly involved in this transition. At the main plant in Munich, the new all-electric i3 has been rolling off the assembly line since August 2026. Starting in 2027, the facility is set to produce only fully electric vehicles. At the beginning of October, BMW also opened its new battery assembly plant in Irlbach-Straßkirchen, which is intended to supply German vehicle plants with Gen6 high-voltage batteries. Meanwhile, production of the New Class is already underway at several international sites, including Dingolfing, Spartanburg, and Shenyang.
BMW has not released specific dates for the discontinuation of orders, end of production, or potential successor models for the affected Gen5 vehicles. The premium manufacturer plans to introduce a total of 40 new models and model updates by the end of 2027, featuring technologies and design elements from the New Class. For the European market, BMW has also announced another all-electric model for 2028 in the high-volume entry-level premium segment.
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About the author
Thomas Langenbucher is an expert in electromobility with professional experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions on ecomento.de. Learn more.
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